Sarijan Limited issued Rs. 10,00,000 new capital divided into Rs. 100 shares at a premium of Rs. 20 per share, payable as under :
`{:("On Application","Rs. 10 per share"),("On Allotment","Rs. 40 per share (including premium of Rs. 10 per share)"),("On First and Final Call","Balance"):}`
Over-payments on applicatio were to be applied towards sums due on allotment and first and final call. Where no alotment was made, money was to be refunded in full. The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 2,000 shares and applicants for 3,000 shares were sent letters of regret and application money was returned to them. All the money due duly received. Give Journal Entries to record the above transactions (including cash transactions) in the books of the company.

Explanation

Working Notes :
(1) Applicants for 12,000 shares have been allotted 2,000 shares. `" Rs."`
Hence excess application money received on 10,000 shares @ Rs. 10 share `" 1,00,000"`
Less : Amount adjusted on Allotment on 2,000 shares @ Rs. 40 per share `" "ul("80,000")`
`" Balance "ul("20,000")`
This amount of Rs. 20,000 will be transferred to Calls in Advance A/c, as it will be adjusted on future calls.
(2) Out of premium of Rs. 20, Rs. 10 are due on allotment.
Remaining Rs. 10 will be assumed to be due on first and final call.